Here's this week's roundup of news and resources, just for you.
Quick takeaways:
Less than half the usual supply means record-high home prices.
Realtors are using lighter inspection contingencies that retain protections against more significant issues.
Large majority choose to invest in a home over buying stocks.
Construction job boom could help create more inventory.
Remote home viewings become the norm.
Read on for our coverage.
Half as Many Houses Available
Prospective buyers shopping today have 52% fewer homes to choose from than at this time last year, according to Realtor.com's Monthly Housing Trends Report. This supply crunch translates to a record median list price of $370,000, 15.6% higher than a year ago. The numbers are even steeper in hot markets like Austin, Texas. 1
Retaining Some Inspection Contingency
In today's super-competitive market, buyers often are waiving their offer's contingency on inspection. Realtors report using middle-of-the-road options for this bargaining chip that don't leave the buyer open to bigger issues with the home. For example, rather than skipping an inspection contingency wholesale, some agents modify the language to exclude any single repair valued at less than $500. 2
Americans Prefer Real Estate to Stocks
Ninety percent of people surveyed by the Federal Reserve Bank of New York would rather invest their money in buying a home than in the stock market. They cited the stability of housing as the deciding factor in their preference. 3
More Jobs, More Inventory
The economy created more than 900,000 jobs in March, including 110,000 in the construction industry alone. That encouraging number could help a housing market starved for inventory. There are more residential construction workers now than at any time since 2008, and housing experts are hoping that translates to higher supply and more affordable options for buyers. 4
Many Buying Homes Remotely
An increasing number of buyers are closing on their new homes without ever setting foot in them. The pandemic accelerated technological trends toward virtual walk-throughs. People can shop for their dream home from anywhere in the world and put in an early offer to win out in a hyper-competitive environment. 5
Have any questions? Reach out to us. We are your home loan experts and are up to date with all the market industry information. kevnik@kevnikmortgage.com
Sources: 1 magazine.realtor; 2 Bankrate; 3 magazine.realtor.com; 4 housingwire.com; 5 forbes.com
